That is understandable if you consider that in the last 3 months, the one large stock that has clearly outperformed all stocks in the market has been Reliance Industries. Just to give an example, RIL has appreciated 140% in the last 4 months since it made a temporary bottom on March 24, 2020. Even if you look from Jan-20, this stock has beaten Nifty, big time.

This created a unique situation wherein RIL has virtually become too big a component of the BSE and the NSE. Consider some statistics. The BSE with almost 5000 listed stocks has an overall market cap of $2 trillion. Out of that Reliance Industries alone has a market cap of $200 billion, which means just RIL accounts for 10% of the BSE market cap.

Stock market experts concede that never has the skewness in favour of one stock been as high as it has been in the last 3-4 months. RIL is already the most valuable company in India by a huge margin. In fact, there is a market cap difference of more than $6 trillion between the top ranked RIL and the next ranked TCS making the domination obvious.